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Private Sector Participation in Light Rail-Light Metro Transit Initiatives


  • Cledan Mandri-Perrott
  • Iain Menzies


This book aims to help governments and public authorities to establish effective light rail-light metro transit (LRMT) systems, and focuses on use of Public-Private Participation (PPP) arrangements. Rather than identify a single approach, authors present options and discuss practical issues related to preparing and implementing new LRMT PPP schemes. The approach is focused on providing information that can be used to make informed decisions, adapted to local policy and objectives. The material presented is intended as a practical guide to developing LRMT PPPs in both developed and developing countries. This work endeavors to provide answers to readers' questions regarding how to successfully incorporate private sector participation in LRMT with a lesser emphasis on why LRMT and the private sector may be beneficial. The primary focus of this text is guiding the reader from design through to project implementation. It starts from the premise that underlying transport policy decisions will have already been made and that LRMT has already been identified as the appropriate transport solution. The authors have included some limited discussion of policy and technical issues where these directly impact the LRMT PPP approach. The approach is presented in nine sections, and in preparing it the author drew on current international LRMT PPP experience, through a series of interviews and case studies. The sections covered are: 1) urban transport and LRMT: an overview of urban transport policy, the characteristics of LRMT schemes and the influences on LRMT policies; 2) technical issues: a brief review of some key technical issues inherent in LRMT schemes and their potential impact on PPP design and implementation; 3) incorporating private sector participation in LRMT initiatives: what PPP has to offer, and an overview of the issues and stages public authorities follow to establish successful LRMT PPP arrangements; 4) understanding and managing risk: analyzing and allocating risks and responsibilities among stakeholders in the LRMT scheme and practical ways of designing risk allocation rules; 5) PPP, design, specifications and performance management: setting service standards and specifications and establishing associated costs; developing of performance and payment indicators and managing compliance; 6) funding and finance: large LRMT capital and system maintenance requirements require strong financing arrangements. The practical use of public and private financing mechanisms under PPP arrangement is reviewed; 7) developing a PPP agreement: looking at the main types of PPP agreements, an outline framework for developing the contractual arrangement is developed through re-view of key issues; 8) procurement: reviewing the approaches that the public authority can use to select the private partner; and 9) conclusions.

Suggested Citation

  • Cledan Mandri-Perrott & Iain Menzies, 2010. "Private Sector Participation in Light Rail-Light Metro Transit Initiatives," World Bank Publications, The World Bank, number 2416, June.
  • Handle: RePEc:wbk:wbpubs:2416

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    References listed on IDEAS

    1. Edwards, Marion & Mackett, Roger L, 1996. "Developing new urban public transport systems : An irrational decision-making process," Transport Policy, Elsevier, vol. 3(4), pages 225-239, October.
    2. Kain, John F, 1992. "The Use of Straw Men in the Economic Evaluation of Rail Transport Projects," American Economic Review, American Economic Association, vol. 82(2), pages 487-493, May.
    3. Kerf, M. & Gray, R.D. & Irwin, T. & Levesque, C. & Taylor, R.R. & Klein, M., 1998. "Concessions for Infrastructure. A Guide to their Design and Award," Papers 399, World Bank - Technical Papers.
    4. Timothy Irwin, 2003. "Public Money for Private Infrastructure : Deciding When to Offer Guarantees, Output-based Subsidies, and Other Fiscal Support," World Bank Publications, The World Bank, number 15117, June.
    5. James Leigland, 2006. "Is the Public Sector Comparator Right for Developing Countries? Appraising Public-Private Projects in Infrastructure," World Bank Other Operational Studies 10743, The World Bank.
    6. Smith, Adam, 2008. "An Inquiry into the Nature and Causes of the Wealth of Nations: A Selected Edition," OUP Catalogue, Oxford University Press, number 9780199535927 edited by Sutherland, Kathryn.
    7. Yescombe, E. R. & Yescombe, E. R., 2002. "Principles of Project Finance," Elsevier Monographs, Elsevier, edition 1, number 9780127708515.
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    1. repec:eee:transa:v:105:y:2017:i:c:p:106-122 is not listed on IDEAS
    2. Chou, Jui-Sheng & Ping Tserng, H. & Lin, Chieh & Yeh, Chun-Pin, 2012. "Critical factors and risk allocation for PPP policy: Comparison between HSR and general infrastructure projects," Transport Policy, Elsevier, vol. 22(C), pages 36-48.
    3. Kevin Dwarka & Eran Feitelson, 2013. "The political economy of urban infrastructure," Chapters,in: International Handbook on Mega-Projects, chapter 8, pages 158-181 Edward Elgar Publishing.
    4. Bray, David & Sayeg, Philip, 2013. "Private sector involvement in urban rail: Experience and lessons from South East Asia," Research in Transportation Economics, Elsevier, vol. 39(1), pages 191-201.
    5. Iain Menzies & Cledan Mandri-Perrott, 2010. "Private Sector Participation in Urban Rail : Getting the Structure Right," World Bank Other Operational Studies 10499, The World Bank.


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